Market Forecasting

Required Information

As we’ve already mentioned, the key variable in determining your ability to secure capital is your perceived credit risk. In order for the bank to make this determination they will often review every aspect of your business. The pertinent business information and financial accounting data they typically require might include the following:

Summary of the average amount of funds on deposit
List of investments, fixed assets, and other assets, with detailed or supplementary schedules, including market or appraisal value where appropriate
List of major vendors, customers and competitors
Aging of receivables, with details regarding any concentration among a few customers
List of notes receivable and any information concerning the risk of collection
Inventory detail with information on price stability, aging and turnover
Statement of your liabilities and reserves, with applicable explanations
Comparison of your operating and balance sheet ratios to industry averages
Cash flow analysis of your actual past experience and financial projections of future income, expenses and cash flow
Relevant financial data including sales forecasts, profit and loss statements, cash flow projections and balance sheets
Miscellaneous documents that flesh out other important details of your operation, including copies of contracts, franchise agreements and tax returns

In the end, each financing transaction (and lender) has its own specific requirements, but these are a few of the more common requests.